KR Choksey is bullish on Sanghi Industries Ltd has recommended Buy rating on the stock with a target price of Rs 115 in its research report dated August 10, 2017.
KR Choksey's research report on Sanghi Industries Ltd
Total Sales stood at INR 3132 mn as against our expectations of INR 3150 mn which was up by 3.8% Y-O-Y and 14.4% Q-O-Q. Total sales volumes declined to 0.66 MT which was down by 7.5% Y-O-Y on account of significantly lower clinker exports and flattish cement volume growth. EBIDTA increased to INR 661 mn which was up by 0.9% Y-O-Y and 56% Q-O-Q and EBIDTA margin stood at 23% as against 24.2% same quarter last year. EBITDA/ton surged to INR 991 as against INR 910 in Q1FY17 primarily on account of sharp increase in realizations.
We value the company at an EV/ton of $90 on FY19E and arrive at a target price of INR 115/share translating into an upside of 37% from CMP of INR 84/share. We maintain our BUY rating on the stock.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.